Asked by: Seamus Logan (Scottish National Party - Aberdeenshire North and Moray East)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what (a) the scope and (b) her planned timeline is for the upcoming review into Universal Credit; whether this review will make an assessment of whether Universal Credit enables claimants to afford essential goods and services; and what steps she is taking to reduce dependence on emergency food aid.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
The Government is committed to reviewing Universal Credit to make sure it is doing the job we want it to, to make work pay and tackle poverty. We have already begun this work with the announcement of the Fair Repayment Rate in the Budget, giving 1.2 million of the poorest households an average of £420 per year. I will lead the review work, engaging with people over the coming year and inviting views on how to improve UC. We will regularly update Parliament on findings and progress.
We know that good work can significantly reduce the chances of people falling into poverty. This will be the foundation of our approach to tackling poverty, including reducing dependence on emergency food parcels. The Get Britain Working White Paper has set out how the Government will seek to grow the economy, using work as a route out of poverty and to improve living standards.
Asked by: Seamus Logan (Scottish National Party - Aberdeenshire North and Moray East)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the potential merits of establishing an independent process to set benefit levels according to the cost of essential goods and services.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
No such assessment has been made.
The Social Security Administration Act 1992 requires the Secretary of State for Work and Pensions to review benefit and State Pension rates each year to see if they have retained their value in relation to the general level of prices or earnings. Where the relevant benefit or State Pension rates have not retained their value, legislation provides that the Secretary of State is required to, or in some instances may, up-rate their value.
Following this review, benefit and State Pension rates are increased in line with statutory minimum amounts and others are increased subject to Secretary of State’s discretion.
Following the Secretary of States’ up-rating decisions for 2025/26, DWP expenditure on state pensions and benefits will increase by £6.9 billion.
Asked by: Seamus Logan (Scottish National Party - Aberdeenshire North and Moray East)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the potential merits of (a) introducing a protected minimum floor for Universal Credit and (b) limiting the benefit cap so it cannot reduce the Standard Allowance by more than 15%.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
No such assessment has been made. As part of the Universal Credit (UC) review, at the Autumn Budget the Chancellor announced the Fair Repayment Rate will be introduced from April 2025, reducing the UC deductions overall cap from 25% to 15%. This measure will help approximately 1.2 million of the poorest households benefit by an average of £420 a year.